| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 14.2x | 17.8x | Top tier | |
Growth | 42 | 5.9% | 7.1% | Around median | |
Quality | 72 | 16.4% | 4.5% | Top tier | |
Safety | 70 | 1.3x | 2.6x | Top tier | |
Capital Return | 64 | 2.15% | 2.12% | Around median | |
Momentum | 59 | -0.9% | 2.9% | Around median | |
Sentiment | 42 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Autoliv manufactures automotive safety systems, including airbags, seatbelts, and steering wheels, and sells them to vehicle manufacturers. Revenue growth is linked to light vehicle production volumes, Autoliv's share of manufacturers' programs, and safety content per vehicle; the adoption of front-center airbags and increased safety content in India helped lift sales during Q2 FY2026.
In Q2 FY2026, revenue reached $2.8 billion, up approximately 3% year over year, gross profit was $509 million, net income was $100 million, and reported earnings per share were $1.35. Gross margin declined from 18.5% to 18.2%, while adjusted operating margin increased from 9.3% to 9.6%, and adjusted operating income reached $270 million; adjusted diluted earnings per share were $2.43.
The growth mix was driven by Asia, particularly Chinese vehicle manufacturers and India. Chinese manufacturers represented 55% of Autoliv's sales in China in Q2 FY2026, compared with 40% in the corresponding period, and organic sales in India grew 36%, outperforming light vehicle production by approximately 20 percentage points; Chery, Suzuki, and NIO were the largest drivers of customer-level sales growth during the quarter.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $127, compared with a range between $116 and $147, while the average is below the 52-week range high of $132.17 and above its low of $99.16. The Neutral rating balances Autoliv's growth with Chinese manufacturers and improved cash flow on the one hand, against the dependence of the FY2026 margin on a strong improvement in Q4, raw material pressures, and restructuring on the other. No valid P/E ratio was provided in the data, so it cannot be used to value the stock.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached $2.8 billion, up approximately 3%, with currency translation contributing approximately $62 million to the year-over-year increase. Organic sales grew by approximately $27 million, or 1%, with strong outperformance in China and India and Chery, Suzuki, and NIO leading customer growth. Adjusted operating income increased to $270 million and its margin to 9.6%, despite the reversal of supplier compensation and impairment costs related to restructuring in Turkey.
Chinese manufacturers accounted for 55% of Autoliv's sales in China in Q2 FY2026, compared with 40% in the corresponding period and 22% in 2022. The company's sales in China outperformed light vehicle production by more than seven percentage points, while its sales growth with Chinese manufacturers exceeded market growth by more than 40 percentage points. The Great Wall Motor and XPENG agreements and the NIO ES9 launch support expansion opportunities, particularly in front-center airbag solutions and zero-gravity seating.
Management expects approximately flat organic sales, with outperformance of approximately 2.5 percentage points versus light vehicle production, which it assumes will decline by 2.5%. The expected adjusted operating margin range is between 10.5% and 11%, with operating cash flow of approximately $1.2 billion and capital expenditures below 5% of sales. Assumptions include an approximately 2.5% positive currency translation effect, total raw material pressure of approximately $110 million, and a tax rate of approximately 30%.
Management said on July 17, 2026, that the Q3 FY2026 margin is expected to be close to the first-half level, while the majority of mitigation actions are concentrated in Q4. These actions include customer compensation for inflation, engineering income, efficiency improvements, and stronger sales growth at the end of the fiscal year. This makes achieving the annual margin range of between 10.5% and 11% sensitive to the timing of customer negotiations and the implementation of cost-reduction measures.
Autoliv plans to gradually discontinue the manufacture of steering wheels, airbags, and seatbelts in Turkey and transfer production to existing facilities in Tunisia, Romania, and other European locations. The company expects approximately 2,200 employees to be affected and the closure to be completed during the first half of 2028, with total charges of approximately $142 million and cash outflows of approximately $129 million. In return, the initiative targets annual pre-tax savings of approximately $40 million, beginning in 2027 and reaching the full run rate in 2028.
